Refer to the Following Figure When Answering the Next Five

Multiple Choice

Refer to the following figure when answering the next five questions.
Figure 9.2: U.S. Output Fluctuations 1960-2012
(Source: BEA and CBO, data from Federal Reserve Economic Data, St. Louis Federal Reserve)
-Consider Figure 9.2. In 1989, the U.S. economy experienced an economic ________, and current output was about ________ potential output.

A) boom; 1 percent above
B) recession; 1 percent above
C) boom; 2 percent above
D) This cannot be determined from the information given.
E) None of these answers are correct.